Audit Quality and Cost of Debt Capital for Private Firms: Evidence from Finland Jukka Karjalainen Department of Business University of Eastern Finland April 10‚ 2010 Abstract The purpose of this paper is to examine the value relevance of the perceived audit quality in terms of who audits‚ as well as the audit outcomes in terms of the auditor’s opinion and accruals quality‚ in the pricing of debt capital for privately-held firms by examining a large sample of privately-held Finnish firms. The
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Regd. No.- 11003811 Course Tutor – Miss Karanjeet Kaur TOPIC-Robotics in vehicles (What is robotics‚ scope of robotics in automobiles‚ existing and future trends) CONTENTS:- 1.Introduction 2.What is robotics? 3.History of Robotics and Robots. 4.Scope of Robotics in various fields. 5.Scope of robotics in automobiles. 6.Current trends. 7.Future of Robotics in Automobiles. 8.References 1.Introduction This is the era of science. We are living in the age of science and technology
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share (P0)? b. What is Gentry’s weighted average cost of capital (WACC)? c. Gentry can increase its debt by $8 million‚ to a total of $10 million‚ using the new debt to buy back and retire some of its shares at the current price. Its interest rate on debt will be 12 percent (it will have to call and refund the old debt)‚ and its cost of equity will rise from 15 percent to 17 percent. EBIT will remain constant. Should Gentry change its capital structure? d. If Gentry did not have to refund the
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Estimating the Cost of Capital: Survey and Synthesis Case 13 Teaching Notes Introduction “Each year in the US‚ corporations undertake more than $500 billion in capital spending” (Bruner 184). This case presents a reasonably analyzed set of teaching notes describing how these financially sophisticated corporations estimate their capital costs. Understanding the estimation of capital costs helps identify the uncertainty of the cost-of-capital theory‚ sets a benchmark for cost-of-capital‚ helps
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Effect) Due 11/9/09 The Effect of the Automobile on American Society When talking about the most influential inventions of the 20th century in America‚ the automobile immediately comes to mind. No other invention has had such a profound impact on almost every aspect of our society‚ and the daily lives of individuals. When one thinks of their daily life‚ they would be hard pressed to imagine a day going by without the use of an automobile. The first automobile produced for the masses in the U.S. was
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Two Wheeler Industry Overview India is the second largest producer and manufacturer of two-wheelers in the world. Indian two-wheeler industry has got spectacular growth in the last few years. Indian two-wheeler industry had a small beginning in the early 50’s. The Automobile Products of India (API) started manufacturing scooters in the country. Bikes are a major segment of Indian two wheeler industry‚ the other two being scooters and mopeds. Indian companies are among the largest two-wheeler manufacturers
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lasting a full 12 months in the industry and established low cost carrier company Kulula.com’s parent company Comair slipping into the red for the year ended December 2011 (Comair declares six-month loss amid rising costs‚ (n.d)). I will be discussing the macro-environmental forces that are affecting the domestic airline industry‚ with a focus on the South African industry. I will also analyse consumer behaviour in the low cost carrier market and the airline industry in general‚ by finding out what
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along with the further clarification on the cost of capital using DCF approach. The cost of capital is a term used in the field of financial investment to refer to the cost of a company’s funds‚ both debt and equity‚ or from an investors’ point of view‚ the shareholders required return on a portfolio of a company’s existing securities. It is used to evaluate new projects of a company as it is the minimum return that investors expect for providing capital to the company‚ thus setting a benchmark that
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Services divisions. The hurdle rate is the cost of capital based on an estimate of the corporation’s WACC. 2. Please estimate the segment WACCs for Teletech (see the worksheet in case Exhibit 1). As you do this‚ carefully note the points of judgment in the calculation. Corporate Telecommunications Products & Systems MV asset weights 100% 75% 25% Bond rating A-/BBB+ A BB Pretax cost of debt 5.88% 5.74% 7.47% Tax rate 40% 40% 40% After-tax cost of debt 3.53% 3.44% 4.48% Equity beta
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culture affects the auto industry. 3.) I do not believe that it is possible for a car company to transcend national culture and produce a global automobile that is accepted by people in every culture. Though car companies can get away for making a regional automobile for a specific region of the world‚ there are too many cultural differences that that affect each market to make a “worldwide” vehicle. Like I said before Europeans have different tastes in automobiles than Americans‚ Africans
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